Click to Print

Can I transfer the assets of my closing business to another company I own?

What are the tax implications?
Roni Lynn Deutch answered May 24, 2010
URL: http://www.entrepreneur.com/answer/222109
Generally, you should be able to transfer assets from one company to another without triggering a taxable event. That being said, there are some additional things to consider.

If the assets were completely depreciated at the time of the transfer, the assets have no basis. Thus the company taking ownership of the asset would not receive any tax benefit from the transfer.

Make sure you structure the transfer so that the closing company does not receive anything in return for the asset. This would be viewed as a sale by the IRS, and thus would have tax implications.

Roni Deutch is known as "The Tax Lady" for a reason: She has two decades of practical experience resolving IRS tax problems and preparing taxes for taxpayers nationwide. Consequently, she has become a well-known media personality and one of the few go-to tax experts in the country. She is the founder and owner of the nation's largest tax resolution law firm, Roni Deutch, A Professional Tax Corp.